It's been encouraging to see theample response we've received to our ongoingcoverage on reputation risk as it relates to small credit unionfraud. Most of the feedback has been positive, with vendors andcredit union managers alike saying the issue can no longer beignored.

While it's reassuring to hear Credit Union Times is onthe mark with coverage, I also enjoy hearing the opinions of thosewho disagree.

Those comments ranged from the shocking to the mocking. Somewondered if our coverage was motivated by those who wish to harmthe industry's reputation, which I assure you, is absolutely notthe case.

Others accused us of sensationalism, saying we are making abigger deal out of the issue than it deserves. Judging by how manycredit union failures in the past year have been due to fraud, Idisagree.

Some readers agreed with the NCUA's decision to focus more on potential losses at large credit unions, whichcould result in devastating losses to the share insurance fund.

Certainly, that argument has merit. Corporate assessmentscontinue to leech precious earnings from federally insured creditunions, and the signals I've received from the NCUA indicate theagency will impose another assessment in 2014, despite tradeopposition.

Large credit unions, both corporate and natural person, havecomplex balance sheets. The more complex the balance sheet, themore risk factors.

And, as large credit unions grow even larger, I think the NCUA'smove to establish the Office of National Examinations and Supervision was a goodone.

Our purpose in covering this topic is to ensure that the NCUA isalso considering protecting credit unions against reputation riskwhile also defending the share insurance fund from losses.

Competing against banks isn't easy. One of the preciousadvantages credit unions have over their for-profit competitors isan honest reputation.

Credit union managers are already facing an overwhelming list ofchallenges. While they develop strategies to address therisk-based capital rule under development at the NCUA, soaringcosts of compliance, technology upgrades, security and benefits,paltry investment earnings and low loan rates, increased liquidityrequirements, compliance pressure and much more, the last thing theindustry needs is another reason for consumers to dismiss creditunions as unsophisticated mom and pop shops that can't controlinternal fraud.

As a former credit union business development manager, I knowfirst-hand how difficult it can be to clear that small businesshurdle. Who among us hasn't had to suppress the urge to bang his orher head against the wall after spending a tidy sum onwell-executed marketing campaigns, only to hear yet another memberexpress surprise that the credit union offers products likemortgages or retirement planning?

Ask any employee who opens a new account, product or service:members frequently say they give their business to the credit unionbecause they like and trust the people who work there. We can'tafford to lose the few benefits we have as comparatively smallshops.

Here's another aspect of small credit union fraud that has meconcerned: the continued threat of retaliation by the NCUA. Ibelieve NCUA officials who say they are making an honest effort to improve the exam process. And according tosome of my friends in the industry who run credit unions, as wellas trade survey results, things are improving.

However, I have been very disappointed in how many folks wereunwilling to go on record to discuss the NCUA's concern with fraudat small credit unions. Every last one of them cited a fear of retaliation by the NCUA.

In defense of the NCUA, some could be using that as an excusewhen in reality, they just don't want their boss or volunteers tosee their name in the paper. But the fact that so many still saythey fear retaliation indicates the NCUA still has work to do inthis area.

But enough picking on the NCUA. Fraud prevention starts at home,with credit union volunteers. Simply shrugging your shoulders andsaying management isn't providing the right reports or assuming athird party will handle everything isn't going to get the job done,even if the NCUA spends months on site inspecting the books.

I'm looking forward to more coverage on this topic, which willinclude tips on how volunteers can prevent and detect fraud. Ifthere are any additional angles you feel we should cover, pleaselet me know.

I'd also like to encourage readers to submit letters to theeditor if you feel we've missed the mark in our coverage. You cansend those directly tome.